Finance minister Ali Sabry and officials left for talks with the IMF on Sunday.
Last week, the government said it was suspending repayment of foreign loans pending talks with the IMF. In a cabinet reshuffle on Monday, the president appointed many new faces and left out four family members who had held cabinet and non-cabinet posts, in an apparent attempt to please the protesters without giving up his family’s grip on power. Opposition parties have rejected the president’s proposal of a unity government, but have been unable to put together a majority in parliament and form a new government. The president and prime minister have refused to step down, resulting in a political impasse. President Rajapaksa admitted on Monday that he made mistakes which led to the crisis, such as delaying an appeal to the IMF for help and banning agrochemicals with the aim of making Sri Lankan agriculture fully organic.Ĭritics say the ban on imported fertiliser was aimed at conserving the country’s declining foreign exchange holdings and badly affected farmers. The Rajapaksa brothers are likely to retain their grip on power even if the constitution is amended, since they hold both offices. “While looking for solutions to the economic problems, it is important that we have political and social stability in the country,” Prime Minister Rajapaksa said, adding that restoring more power to parliament will be a start to the reforms. President Gotabaya Rajapaksa, the prime minister’s brother, concentrated power in the presidency after being elected in 2019.
Mr Rajapaksa told parliament that the power shift is a quick step that can be taken to politically stabilise the country and help talks with the International Monetary Fund over an economic recovery plan. Prime Minister Mahinda Rajapaksa said on Tuesday that the constitution will be changed to limit presidential powers and empower parliament, as protesters continued to demand the president and his powerful family quit. Thousands of protesters continued to occupy the entrance to the president’s office for an 11th day on Tuesday, blaming him for the economic crisis. Sri Lanka faces a political crisis (Eranga Jayawardena/AP) There was another round of increases at midnight on Monday. People have endured months of shortages of essentials such as food, cooking gas, fuel and medicine, lining up for hours to buy limited stocks.įuel prices have risen several times in recent months, resulting in sharp increases in transport costs and other essentials. A severe shortage of foreign exchange means the country lacks money to buy imported goods.
Sri Lanka is on the brink of bankruptcy, with nearly 7 billion dollars (£5.4 billion) of its total 25 billion dollars (£19 billion) in foreign debt due for repayment this year. Two others were undergoing surgery, she added. Spokesman Nihal Talduwa said the demonstrators were blocking railway tracks and roads and had ignored police warnings to disperse.ĭr Mihiri Priyangani of the government hospital in Kegalle said 11 people were taken there with suspected gunshot wounds and one had died. Protesters in Colombo (Eranga Jayawardena/AP) Police confirmed they shot at protesters in Rambukkana, 55 miles north east of Colombo, the capital.